Unformatted text preview: $50,000 $51,100 $50,000 @ 15% = $7,500 19,000 @ 25% = 4,750 Federal Income Tax $12,250 Property Insurance (150 + 450) $2,700 is $75/month on a 3-year policy. $450 is six months of current year coverage Professional fees (200 + 1,100) $600 would be capitalized and included in the value of the restaurant to be built. Repairs and Maintenance Fine is not allowed as a deduction on an income tax return. Advertising and Promotion $2,400 is a prepaid expense and is not deductible on the current year tax return. * Cost of Goods Sold ** Tax Calculation...
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- Fall '10
- Taxation in the United States